In Indonesia, Presidential Platforms are Same Same but Different

A worker carries two baskets as he working in Muncar Port on May 25 in Banyuwangi, Indonesia.

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The two men running for president in Indonesia’s July election are hardly similar as individuals, but the economic platforms they’ve recently laid out reveal plans for the country that are not so different.

In mission statements submitted last week, both men appear to promote greater economic nationalism – something President Susilo Bambang Yudhoyono’s government has already made a focus, raising concerns from foreign investors.

Joko Widodo, a former businessman and small-town mayor running for the opposition Indonesian Democratic Party of Struggle (PDI-P), said he would limit foreign dominance in the mining and energy sectors, while also restricting the sale of Indonesian banks to foreign buyers.

He believes that the country’s natural resources have been exploited by foreign investors and their Indonesian “compradors” for too long, said Eric Sugandi, an economist from Standard Chartered Bank in Jakarta.

Prabowo Subianto an ex-army general during autocrat Suharto’s era and candidate for the Great Indonesia Movement Party, says he will continue contract renegotiations with mining, oil and gas companies and would look to domestic businesses to take over expired concessions. He has also highlighted the party’s plan to strengthen national industries, such as car production and heavy machinery.

Mr. Widodo is often described as a humble man of the people while Mr. Subianto has a reputation for being firm and decisive. Both, however, are placing heavy emphasis on economic independence, with plans to improve food and energy self-sufficiency.

Despite the political rhetoric, some economists say whoever is elected will be more pragmatic once in office and will be unlikely to push the strict policies they espouse during campaigning.

“We believe that both candidates will seek to expedite infrastructure development and will allow foreign investors to invest in the infrastructure sector,” said Mr. Sugandi. “We also think they will implement more nationalistic economic programs in sectors related to Indonesia’s national interests, such as the mining and agricultural sectors and, to a lesser extent, the financial sector.”

The two candidates are required to submit mission statements to the country’s elections commission in order to register for the presidential race. Economists point out that their programs are not much different from the current government’s programs.

Here’s several important points laid out by both candidates:

Joko Widodo and running mate Jusuf Kalla

Improve food self-sufficiency by devoting 1 million hectares of new fields outside Java to farming.

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